GUIDED NOTES

Unit C: The Business of Fashion

COMPETENCY:

3.00

Explain the business and economics of the fashion

industry.

OBJECTIVE:

3.01

Explain the concept of marketing in fashion.

A. Explain __________________ and the marketing concept.

1. __________________: The process of developing, promoting, pricing,
and distributing products in order to satisfy customers needs and wants.
Marketing involves the total process of finding or creating a profitable
market for specific goods or services.
2. __________________: Specific marketing activities designed to have
fashion-oriented merchandise at the right time, place, quantity, and price
to meet customer demand.
3. __________________: A business approach that directs all marketing
efforts towards satisfying customer wants and needs. Customer needs
must be determined before goods can be produced.
B. Explain the __________________ and market identification.
1. Market: The group of all potential customers. These customers have
__________________and the willingness and means to satisfy those
wants. Businesses must understand who __________________are in
order to efficiently meet their needs and wants.
2. Target market: __________________of a total market that a company
desires to have as customers and toward whom it directs its marketing
efforts. It is important that each fashion company carefully define its
__________________in order to make or carry products directed toward
that market.
3. Market segmentation: Dividing __________________into smaller
groups having similar characteristics. Every business must decide which
customers it can __________________to be successful. Businesses
must identify those customers to whom they can sell the most and
__________________profits.
a. __________________ segmentation: A way to segment markets
based on vital statistics of the population such as age, race, gender,
education level, income level, and occupation. Examples: The GAP
targets a youth market. Kmart and Wal-Mart target customers
interested in discounts.
b. __________________segmentation: A way of segmenting a market
based on consumers lifestyles, values, attitudes, and self-concepts.
Psychographic segmentation tries to explain consumer behavior and
determine what the consumer is thinking and feeling. Behavior may
be influenced by cultural background or social group. Examples:
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Dressing down in the __________________a need for softer

fabrics and more __________________. Many magazine publishers
today produce publications specific to people who share interests
and activities, i.e., Golf Digest, Ski, and Modern Bride.
c. __________________ segmentation: Segmenting a market based
on where a person lives. Examples: Surf wear is primarily marketed
at or near the coast. Ski wear __________________to individuals at
or near areas that receive a lot of snow or in which skiing is a
popular winter sport.
d. __________________ segmentation: Dividing consumers into
groups according to __________________. Behavioral
segmentation groups consumers into categories based on what they
are __________________in a product and why they buy the product.
The marketer might consider what benefits the consumer wants, the
__________________ rate of use of the product, loyalty to a
particular product or brand, and response related to a special
occasion. Example: (product benefits) Shoe manufacturers divide
their market into segments for people who __________________in
various sports. Each of these activities requires different demands
on footwear; therefore, __________________ must market different
shoes for each of the market segments. Each customer has different
expectations of the shoes __________________activity they are
participating in.
C. Explain the marketing mix.
1. __________________: A combination of decisions a business must
make in order to best reach __________________market; known as the
four Ps of marketingproduct, place, price, promotion.
2. Product considerations. __________________must decide what goods
or services are in demand and bring those products to the consumer.
a. Choice of products. The __________________of consumers must
be considered to determine which goods and services a business will
offer to its customers.
b. Brand name. What __________________products will the business
offer? Will the business develop private brands?
c. Level of quality. What level of __________________will the
business offer? How well does product quality reflect business
image?
d. Packaging. Does the __________________ protect the product and
provide necessary information about the product?
e. Warranties/guarantees. How will the business
__________________ guarantee satisfaction? Will warranties be
offered when appropriate?
3. Place considerations. Marketers must make products
__________________ at the right time and location.
a. __________________ will products be offered to customers?
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b. What method will be used to get products from producer to

consumer? (__________________)
(1) Direct distribution: A distribution channel in which the producer
sells goods or services to the final user. Example: A button
manufacturer __________________to garment manufacturers.
(2) Indirect distribution: A distribution channel in which goods or
services __________________to the consumer through one or
more intermediaries. The most common form of indirect
distribution is when a product goes from manufacturer/producer
to retailer to consumer. This is the __________________
fashion apparel takes. Example: Levi Strauss sells jeans to
Belk who, in turn, sells to the consumer.
c. What is the __________________method of transportation?
4. Price considerations. Marketers must decide on an
__________________to charge customers for their products.
a. Affected by __________________demand
b. Cost of producing the item
c. Markup
d. Terms of sale such as credit and/or discounts
5. Promotion. __________________is the communication that informs,
reminds, and persuades customers of __________________available to
them.
a. Advertising
b. Publicity
c. Personal selling
d. Public relations
6. Many businesses also consider __________________ to be an
important element in the marketing mix since they can make the
difference between __________________by the way they carry out the
other elements of the marketing mix.
D. Explain the marketing functions as they relate to the fashion industry.
1. Distribution: The ____________________________________on their
way from the manufacturer to the consumer. Distribution is referred to as
place in the marketing mix.
2. Financing: Obtaining the __________________needed to cover the
costs of operating a business.
3. Marketing-Information Management: Obtaining __________________
about what consumers want. Example: marketing research
4. Pricing: ____________________________________to charge for
goods and services. Price must cover
a. The costs __________________marketing research.
b. The costs of __________________he business.
c. The costs __________________the product.
d. The costs __________________the product.
e. The costs involved in __________________ the product.
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f. The costs __________________ the product to the final consumer.

g. __________________ for all people involved in the marketing
process.
5. Product/Service Management __________________necessary in
designing, producing, maintaining, improving, and obtaining products or
services __________________needs.
6. Promotion: Communication used to inform, persuade, or remind people
about a businesss products.
7. Selling: Determining ____________________________________and
responding to those needs and wants through planned, personalized
communication intended __________________decisions and ensure
satisfaction.

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